Houk v. Memphis Construction Co.

15 S.W.2d 742, 159 Tenn. 103, 6 Smith & H. 103, 1928 Tenn. LEXIS 67
CourtTennessee Supreme Court
DecidedApril 15, 1929
StatusPublished
Cited by6 cases

This text of 15 S.W.2d 742 (Houk v. Memphis Construction Co.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Houk v. Memphis Construction Co., 15 S.W.2d 742, 159 Tenn. 103, 6 Smith & H. 103, 1928 Tenn. LEXIS 67 (Tenn. 1929).

Opinion

Mr. Justice Chambliss

delivered the opinion of the Court.

Complainant filed her bill to recover rent on offices leased through her agents, Marx & Bensdorf, to J. B. Underberg, and sought a decree against the Construction Company as the assignee of the original lessee. The Construction Company denies liability on several grounds, in substance, (1) that its occupancy, following delivery of possession by Underberg, was as a subtenant merely, and not as an assignee; (2) that complainant is estopped to make the insistence by inconsistent recitals in a former suit; and (3) that the statute of frauds applies.

The Chancellor dismissed the bill, but the Court of Appeals reversed his decree. A petition for a writ of certiorari has been granted and argument heard by this Court. A

*105 The question as to the nature of the transaction is largely one of fact, and we are of opinion that the Court of Appeals has reached a correct conclusion on grounds set forth in its opinion, to which we refer. Briefly, the testimony of Mr. Chas. Haase, of Marx & Bensdorf, whose high character is conceded by counsel for defendant, while perhaps inaccurate as to one or more details, quite definitely and forcibly sustains the theory of the complainant; and taken in connection with the testimony of Underberg, the conduct of Malkin of the Construction Company at the time of his entry, and particularly the paper signed by him contemporaneously, agreeing for Underberg to retain the offices for two months and expressly referring to the “Assignment of a lease on the rooms 210-212 Messick Building, this date,” we think there can be little doubt that the transaction was an assignment, rather than a subletting.

It is said that no delivery was made of the lease, but we think the record shows sufficiently a constructive delivery, which is all that is required. Malkin, for the Construction Company, visited the agents and interviewed them touching his taking over of the premises, agreeing, according to Mr. Haase, to assume the obligations of the lease, which was consequently formally assigned to him. Malkin recognized this rental agency as a satisfactory depositary of the paper, which was in their hands subject to his inspection, and he could have had manual delivery thereof at his request. Quite obviously the matter of delivery of the writing is never relatively so important when, as here, there is an actual contemporaneous delivery of possession of the premises, followed by occupancy and payments made in accordance with the terms of the lease. “Constructive” is defined by Bouvier as, *106 “that which'amounts in the view of the law to an act, although the act itself is not necessarily really performed.” And under the general head of “Delivery” it is said that, “No particular form of delivery” (of a deed) “is required. . . . The real test is, did the grantor, by his act or words, or both, intend to divest himself of titles? If so the deed is delivered.” And again, “any words or acts which show an intention to receive the title will be sufficient to prove the acceptance. 50 S. W. 39.”

The statute of frauds does not apply. There was a writing signed by the party to be charged, and it is settled that no more is required. Lee v. Cherry, 85 Tenn., 707; Lusky v. Keiser, 128 Tenn., 705.

We also concur with the conclusion reached by the Court of Appeals, on the petition of complainant for a rehearing in that Court, that complainant is not estopped by inconsistent recitals in her pleadings in the former suit. It is not Judicial Estoppel, resting on contradictory statements made on oath, where prejudice is non-essential, that is invoked. The recent case of Sartain v. Dixie Coal Co., 150 Tenn., 633, discusses and distinguishes the different classes of Estoppel.

It is that phase of Estoppel resting on inconsistent statements or' positions in judicial proceedings that is here invoked. This phase of the doctrine is classified by some authors (10 R:. C. L., 670) under the general head of Equitable Estoppel, or Estoppel in pais, and its application is subject to limitations not applicable to Judicial Estoppel, or as termed “Estoppel by Oath.” Sartain v. Dixie Coal Co., supra. In the latter class of cases it is not essential that the party invoking it shall have been prejudiced, although even then a showing of honest *107 mistake will excuse. McLemore v. Railroad, 111 Tenn., at page 639; Harris v. Water Co., 114 Tenn., at page 341; Stearns Coal & Lumber Co. v. Jamestown R. Co., 141 Tenm, at page 207.

Here we have unsworn pleadings in a former suit, where, if estoppel may be applied at all, it will be limited to cases of deliberate and conscious inconsistency. The following pertinent statement is found, supported by numerous citations, in 21 C. J., p. 1064:

‘‘The rules as to the conclusiveness of allegations in pleadings in the same case do not apply with the same strictness in the case of1 pleadings in another case or proceeding. Although statements in pleadings constitute solemn judicial admissions of fact requiring evidence to contradict them, independent of the estoppel raised by the judgment in the case, allegations or recitals in pleadings in a prior case or proceeding do not as a rule operate as a technical estoppel by record against the party making them, in a subsequent case, proceeding, or transaction, and a fortiori, where the allegations or recitals are not inconsistent with the position subsequently assumed by the pleader, or where the other party did not accept or rely on the statements or recitals. Of course no estoppel by record can be invoked where the allegations or recitals did not conclude the pleader in the prior proceeding, as where the action was discontinued or dismissed, without a decision on the merits; nor where the allegations were made through inadvertence or by mistake. Nevertheless, in some cases so-called estoppels by record have .been invoked with respect to material allegations or recitals in pleadings, but an examination of these authorities will usually disclose the presence of facts or circumstances under which the pleader might *108 have been estopped or concluded other than by a technical estoppel by record, as where his admissions, allegations, or recitals were inconsistent with the position he sought subsequently to assume, to the detriment or prejudice of one who properly had a right to rely upon such admissions or statements.”

And, in Tate v. Tate, 126 Tenn., at page 214, this Court said:

“It may be stated, on the general subject of estoppel, that it cannot be held operative against anyone, unless the statement complained of was made under such circumstances as justified the other party in relying on it, and unless it was relied on, and then it will not be binding where such other party had equal opportunity of ascertaining the truth of the representation.”

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Bluebook (online)
15 S.W.2d 742, 159 Tenn. 103, 6 Smith & H. 103, 1928 Tenn. LEXIS 67, Counsel Stack Legal Research, https://law.counselstack.com/opinion/houk-v-memphis-construction-co-tenn-1929.